August 18, 2016

Presidency Approves Four Oil Wells for Lagos, Rejects One

The Federal Government has said four of the five oil wells discovered in Lagos belong to the state. It added that the fifth oil well could not have belonged to Lagos State since its location fell outside the approved distance.
The Chairman, Indices and Disbursement Committee, Revenue Mobilisation Allocation and Fiscal Commission, Alhaji Aliyu Mohammed, on Wednesday said that the disproved oil well fell beyond 200 metres isobaths and could not have legitimately belonged to Lagos.

Mohammed spoke at the Lagos Governor’s office, Ikeja, during the visit of a delegation of the committee, adding that the delegation was in the state for the purpose of verifying crude oil and gas production from the recently discovered Aje oil wells.

He said the verification by the committee and its recommendation would facilitate the disbursement of 13 Percent Derivation Fund to the state in line with the Nigerian Constitution.

Governor Akinwunmi Ambode described the visit as historic. He pointed out that the visit marked the beginning of the official step that would take Lagos to the final destination as an oil-producing state.

Ambode said, “The discovery of oil in Lagos State is significant for Nigeria. It is the first time that oil would be produced outside the Niger Delta.

“It means that a new path to diversification is what we are now witnessing. We will also encourage other states to start activating their mineral deposits to expand the Internally Generated Revenue.”